What Could Cause a Decrease in the Price Level and Simultaneously

question 59

Multiple Choice

What could cause a decrease in the price level and simultaneously an increase in GDP similar to the 1920s in the United States?

• A) an increase in interest rates
• B) a decrease in consumer confidence
• C) an increase in productivity
• D) a decrease in interest rates

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Definitions:

Risk Avoidant

Characterizes individuals or strategies that prioritize minimizing potential losses or risks.

Justice Principle

The ethical concept that emphasizes fairness and the equitable treatment of individuals in decision-making processes and distribution of resources.

Profits

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.